Biden Administration Sets Limits on Use of Short-Term Health Insurance Plans, But States Can Do More to Protect Consumers

By Justin Giovannelli, Kevin Lucia, and Christina L. Goe

A recently proposed federal rule aims to mitigate the harm of short-term insurance plans, products exempt from the Affordable Care Act’s (ACA) consumer protections. Short-term plans were originally intended for people experiencing a short gap in coverage, but the Trump administration, seeking to promote these products as a cheap alternative to comprehensive health insurance, allowed short-term products to last 364 days and be renewed for an additional two years. Since then, new laws have significantly improved the affordability of ACA marketplace coverage, and evidence from the unregulated market has demonstrated the dangers ACA-exempt products pose to consumers. The Biden administration’s proposed rule would establish safeguards to help consumers navigate the critical differences between comprehensive coverage subject to the ACA’s consumer protections and other coverage arrangements, including short-term plans.

In a post for the Commonwealth Fund’s To the Point blog, CHIR’s Justin Giovannelli and Kevin Lucia and attorney and health policy consultant Christina L. Goe discuss the risks short-term plans pose for consumers and markets. The authors explain the proposed federal rule and describe what else states can do to mitigate risks for their residents.

You can read the full post here.